Pacific Imperial Railroad Announces Update in Operations

February 15, 2013 05:04 PM Eastern Standard Time

SAN DIEGO--(BUSINESS WIRE)--Pacific Imperial Railroad today announced an update to its operations,
as well as changes to its management team. On December 20, 2012, Pacific
Imperial signed a 99-year lease with the San Diego and Arizona Eastern
Railway Company ("SD & AE") and the San Diego Metropolitan Transit
Development Board ("MTS") to operate the Desert Line, which provides
Pacific Imperial the sole rights to run rail freight between the border
crossing San Ysidro (between the U.S. and Mexico traveling south), and
the border crossing at Tecate and Division (south of Campo) between
Mexico and the U.S. traveling north. The Desert Line is uniquely
positioned to service approximately 800 manufacturing facilities in
proximity to the rail, the vast majority of which are owned by Fortune
500 companies.

Since signing the lease, the company has taken significant steps toward
improving the Desert Line. The company has been engaging engineering,
financial and strategic partners to work toward upgrading the Line to
the highest standards. On February 1, 2013, the company named Ernest J.
Dahlman, III Chief Executive Officer. Mr. Dahlman founded and served as
the President of Dahlman Rose & Company, a full-service investment bank
focused on transportation, infrastructure and commodity-related
industries. He brings significant industry and financial experience to
the team, and a proven track record of advising and raising capital for
public and private companies.

Donald Stoecklein, President of Pacific Imperial, stated, "We are very
excited to have Ernie join the team. PIR has a significant opportunity
to service the Maquiladoras, also known as Maquila or twin plants area
of Mexico. Our goal is to provide the fastest, most cost efficient and
safest opportunity for these companies to move freight. Ernie’s
background advising companies in our sector and others on strategic
matters is a significant addition to our team."

The company has been engaging strategic partners to work toward
upgrading the Line and make it fully operational. Mr. Dahlman stated,
"We have a significant opportunity to service a broad customer base in
this area with our Desert Line. As we upgrade the rail and improve our
operations, my goal is to have our customer base running PIR at full
capacity. The customer and industry feedback has been tremendous so far.
I'm happy to be a part of this incredibly exciting project, and to work
toward providing the highest level of service for our customers."

ABOUT PACIFIC IMPERIAL RAIL

Pacific Imperial Railroad, Inc., a Delaware corporation, is the owner
and operator of a shortline and freight railroad.The railroad
PIR operates is on approximately 130 miles of track, reaching from San
Diego, California to Imperial County, California, and crossing through
the Tijuana-Tecate region of Baja California, Mexico and eastern San
Diego County, U.S.A.The 130 miles of track extends north and
east from International Border (junction called Division) to Plaster
City, where it joins the Union Pacific (UP) Line from El Centro,
California.